You'd think it would be trivial to back out the effects of buybacks from eps when calculating bonuses that are due based on earnings. I'm just one guy coming up with that theory in a few seconds while multi-tasking with other things, so how a team of lawyers and high-priced MBA's couldn't see that obvious loophole is a mystery. Unless of course, they left the loophole there on purpose.

I am in the camp that says that the loopholes in place when it comes to performance based bonuses are on purpose to allow executives more tools to achieve the desired performance.

I continue to firmly believe that Buybacks more often than not are abused and typically do not benefit investors over the long term.  In many cases, companies end up buying the company stock at inflated prices, I believe this will prove to be the case again for the majority of companies that have buyback plans in place.  I would expect many of these buyback programs to be rescinded over the next year or two.